The effect of public finance resources on economic growth: The case of Turkey

Economic growth has been an important threshold for developed and developing economies in the past to the present. Ensuring this threshold in a sustainable framework for countries is at the forefront of economic policies. Sustainable economic growth has multiple factors and variables. One of these variables affecting economic growth is public financing sources. Public financing sources are basically built on tax revenues and borrowing revenues. The sustainability of economic growth, especially in underdeveloped and developing economies, is provided either by the state or by the state-sponsored private sector. The state's foundations on solid foundations in a sustainable framework of economic growth have a close relationship with public financing sources. In the study, the impact of public financing resources on economic growth was tried to be tested in Turkey with the help of VAR Analysis of 2006: Q1 – 2020: Q3 periods. The study consists of three parts. In the first part of the study, public expenditures were included as a bridge to the market of public financing sources and public financing sources. In the second part, the concept of economic growth and public financing sources in Turkey, economic growth and public expenditure processes were examined within the framework of various data. In the third and final part of the study, analysis was applied on public financing sources and economic growth data. Priorities data stasis was tested by Phillps – Perron stasis test. After the variance separation of static data was made, VAR analysis was performed and finally the effect and response functions of public finance sources on economic growth were tested. Keywords: Public Finance Resources, Economic Growth, VAR Analysis, Impact – Response Functio